How to Hire Remote Employees in Latin America (2026 Guide)

Why US Companies Are Hiring in Latin America

Latin America has become the top nearshore destination for US companies — and it is not slowing down. In 2026, remote hiring in LATAM is growing at over 30% year-over-year, driven by three forces: dramatic cost savings (40-70% compared to US salaries), time-zone alignment that allows real-time collaboration, and an expanding pool of university-educated, English-proficient professionals. Unlike offshore hubs in Asia or Eastern Europe, LATAM talent works during US business hours, which eliminates the async delays that undermine productivity.

For startups, this means stretching runway by 2-3x on engineering headcount. For mid-market companies, it means scaling customer support and operations without doubling overhead. And for enterprises, it means accessing specialized skills — React developers, data engineers, bilingual accountants — that are in short supply domestically. The result is a hiring strategy that is faster, cheaper, and increasingly mainstream.

Cost Comparison: US vs LATAM Salaries (Updated February 2026)

The single biggest reason companies hire in Latin America is cost savings. Below is a side-by-side comparison of average monthly salaries for common roles. These figures reflect full-time, senior-level professionals sourced through Nexus placements and validated against Glassdoor, Levels.fyi, and local salary surveys.

These savings are not just on base salary. US employers also pay 20-30% on top of salary for benefits, payroll taxes, equipment, and office space. When you hire through a staffing partner like Nexus, many of those costs are absorbed or significantly reduced, pushing real savings closer to 60-70% for most roles.

See our full cost breakdown: Cost of Hiring in Latin America vs the US →

Best Countries for Hiring Remote Talent in LATAM

Not all LATAM countries are equal when it comes to remote hiring. Each has distinct advantages depending on the roles you need to fill, your budget, and your time-zone preferences. Here are the four strongest markets in 2026.

Argentina

Argentina is widely regarded as LATAM's strongest market for tech talent. Buenos Aires alone produces over 10,000 computer science graduates per year. The country has a deep tradition of software engineering excellence, with engineers who are comfortable in React, Node.js, Python, and cloud infrastructure. English proficiency is high — ranked 1st in Latin America on the EF English Proficiency Index. The economic environment also means salaries remain very competitive: senior software engineers typically earn $4,500-$6,500/month, compared to $12,000-$16,000 in the US. Time zone: GMT-3 (overlaps with EST during most of the workday).

Colombia

Colombia is the go-to market for customer-facing roles. Colombian professionals are known for their neutral Spanish accent (valuable for bilingual support) and increasingly strong English skills. The government has invested heavily in tech education through initiatives like MinTIC, and cities like Bogota and Medellin now have thriving startup ecosystems. Colombia shares the EST time zone (GMT-5), making real-time collaboration seamless. Salaries for senior developers range from $3,500-$5,500/month. For customer support and virtual assistant roles, Colombia is often the most cost-effective choice.

Mexico

Mexico's biggest advantage is time-zone alignment — much of the country operates in CST or MST, which means perfect overlap with the US West Coast and Central time zones. Mexico also has the largest population of any Spanish-speaking country, producing a massive talent pool across engineering, design, finance, and operations. The proximity to the US means cultural alignment is strong, and many Mexican professionals have prior experience working with US companies. Senior developer salaries range from $4,000-$6,000/month.

Brazil

Brazil has the largest absolute number of developers in Latin America — over 500,000 software professionals. The country is especially strong in Java, Python, and data engineering. While Portuguese is the primary language, English proficiency among tech professionals has improved significantly, particularly in Sao Paulo, Florianopolis, and Belo Horizonte. Brazil's time zone (GMT-3) overlaps well with EST. Senior developer salaries range from $4,000-$6,500/month. Brazil is an excellent choice when you need to scale engineering teams quickly.

Legal Considerations for Hiring in LATAM

One of the most common concerns US companies have about hiring in Latin America is compliance. The good news: you do not need to set up a legal entity in every country. There are three main approaches, each with tradeoffs.

1. Hire independent contractors directly — Fastest to set up, but carries misclassification risk if the worker operates like a full-time employee. Suitable for short-term projects or truly independent engagements.
2. Use an Employer of Record (EOR) — A third-party company becomes the legal employer in the target country, handling payroll, taxes, and benefits. This is compliant but can cost $400-$700/month per employee on top of salary.
3. Partner with a staffing agency like Nexus — Nexus handles the entire compliance layer, including contracts, payroll, and local labor law requirements. This is the most common choice for companies hiring 1-20 remote employees, because it combines compliance with recruitment expertise.

Regardless of the approach, ensure that contracts specify the governing jurisdiction, intellectual property ownership, confidentiality obligations, and termination terms. Most LATAM countries have stronger employee protections than the US (mandatory severance, notice periods, vacation minimums), so working with a partner who understands local law is critical.

The Nexus Vetting Process: How We Find Top 3% Talent

Not all remote hiring platforms are created equal. At Nexus, we accept fewer than 3% of applicants into our talent network. Here is exactly how our vetting process works.

1. Application screening — We review resumes, portfolios, and work history. We look for candidates with 3+ years of professional experience and a track record of remote work.
2. English proficiency assessment — Every candidate completes a structured English evaluation covering written communication, verbal fluency, and comprehension. We require B2+ level on the CEFR scale.
3. Technical assessment — Role-specific evaluations: coding challenges for developers (HackerRank-style + take-home projects), financial modeling for accountants, workflow simulations for virtual assistants.
4. Behavioral interview — A 45-minute interview assessing communication skills, problem-solving approach, cultural fit for US work environments, and remote-work discipline.
5. Reference checks — We contact at least two prior employers or clients to verify performance, reliability, and professionalism.
6. Client matching — Approved candidates are matched to open roles based on skills, experience, industry fit, and time-zone preferences. You receive a shortlist of 3-5 vetted candidates to interview.

We hired a senior React developer through Nexus in 14 days. The vetting process was thorough — every candidate we interviewed was genuinely strong. It felt like choosing between A-players.

— CTO, Series B SaaS Company (Nexus client)

Step-by-Step: How to Hire Remote Employees in LATAM

Whether you use Nexus or go it alone, here is the process for hiring remote employees in Latin America in 2026.

Step 1: Define the Role and Requirements

Start with a clear job description that includes required skills, experience level, English proficiency expectations, working hours, and whether the role is full-time or part-time. Be specific about the tech stack (e.g., "React + Node.js + PostgreSQL" rather than "full-stack developer"). Include the salary range you are targeting — transparency attracts better candidates.

Step 2: Choose Your Hiring Method

You have three options: post on remote job boards (LinkedIn, WeWorkRemotely, GetonBoard), use a staffing agency (Nexus, Near, South), or build an internal recruiting team. For most companies hiring 1-10 remote employees, a staffing agency is the fastest and most cost-effective route. Nexus typically delivers a shortlist within 7-10 days.

Step 3: Interview and Evaluate Candidates

Conduct 2-3 interview rounds: an initial culture-fit call (30 minutes), a technical assessment (60-90 minutes), and a final decision-maker interview (30 minutes). Use structured interview scorecards to compare candidates objectively. Pay attention to communication clarity, problem-solving approach, and enthusiasm — not just technical skill.

Step 4: Extend an Offer and Handle Compliance

Once you select a candidate, extend a formal offer that specifies compensation, start date, working hours, equipment provisions, and reporting structure. If you are working with Nexus, we handle the contract, compliance, and payroll setup. If hiring independently, consult a local attorney or EOR provider to ensure your contract complies with the employee's country of residence.

Step 5: Onboard for Success

Remote onboarding requires more structure than in-office. Prepare a 30-60-90 day plan, assign a buddy or mentor, schedule daily check-ins for the first two weeks, and provide access to all tools (Slack, GitHub, Notion, etc.) before day one. Set clear expectations about communication norms — when to be online, how to report blockers, and what "done" looks like for their first projects.

Common Mistakes to Avoid When Hiring in LATAM

• ✓Paying too little — LATAM salaries are lower than the US, but paying bottom-of-market rates guarantees high turnover. Pay at the 60th-75th percentile for the local market to retain top talent.
• ✓Ignoring time zones — A developer in Argentina (GMT-3) and a manager in San Francisco (GMT-8) have only 4 hours of overlap. Plan for this or prioritize candidates in closer time zones.
• ✓Skipping the English assessment — Resumes can overstate language proficiency. Always test English skills with a live conversation before making an offer.
• ✓Treating remote employees as second-class — Include LATAM team members in all-hands meetings, give them visibility into company strategy, and offer career development opportunities. Retention depends on belonging, not just compensation.
• ✓Not understanding local labor law — Many LATAM countries require 30 days notice for termination, mandatory severance, and 15-30 days of paid vacation. Build these into your budget from the start.

Explore LATAM Talent by Role

Ready to start hiring? Explore our most popular role pages for detailed salary data, vetting criteria, and transparent pricing.

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Nexus connects US companies with pre-vetted professionals from Latin America in under 21 days. Transparent pricing, no hidden fees, and a risk-free guarantee — if we cannot find a candidate that meets your requirements, you pay nothing.